Inergy Completes Acquisition Of Stagecoach Lateral Pipeline

Kansas City, MO - Inergy, L.P. announced that its regulated subsidiary, Central New York Oil and Gas Company, LLC, has completed the previously announced acquisition of the 24-mile lateral pipeline connecting Inergy's Stagecoach natural gas storage facility to Tennessee Gas Pipeline Company's ("TGP") Line 300 ("Stagecoach Lateral").

The Stagecoach Lateral extends from Inergy's central compression facility in Tioga County, New York, to TGP's Station 319 in Bradford County, Pennsylvania. The facility was placed in service by TGP in January 2002, and it has a certificated capacity of 500 mmcf/day. The Stagecoach Lateral, when combined with the planned connectivity to the Millennium Pipeline Project, will allow Inergy to provide additional services to its customers. These include providing wheeling or hub services through its storage facility with multiple delivery points and further enhance the strategic value of Stagecoach in the Northeast natural gas storage and transmission infrastructure. The purchase price of the Stagecoach Lateral was approximately $35 million plus a customary working capital adjustment, and the acquisition is expected to be immediately accretive to unitholders on a distributable cash flow per unit basis.

SOURCE: Inergy, L.P.